What Makes a Great Customer Experience - The Focus … · Creating a great customer experience is a...

What Makes a Great Customer Experience

Dr. Fred Lemke, Professor Moira Clark, Professor Hugh Wilson

This report is produced by The Henley Centre for Customer Management on behalf of its’

members.

The Henley Centre for Customer Management

i

Table of Contents

1. Executive Summary 1

2. Introduction 2

3. Literature on Customer Experience 2

4. Research Design – Special Interview Technique 5

5. The Sample 6

6. Overall Results 6

6.1. Results: Important Business-to-Business Factors 13

6.2. Results: Important Factors Business-to-Consumer 17

6.3. Results: B2B Vs. B2C 21

6.4. Results: Multi-Channel Constructs 21

7. Implications for Managers 23


1 © The Henley Centre for Customer Management

1. Executive Summary

Offering wonderful products and excellent service are hygiene factors today and do

not lead to competitive advantage.

Creating a great customer experience is a competitive weapon, but the definition and

measurement of the importance is currently a source of controversy.

Scholars have made several attempts to uncover the real meaning of customer

experience. Unfortunately, these studies are lacking in scope and depth.

The authors of this report settled for the Repertory Grid Technique. This research

technique is particularly appropriate in projects where interviewees find it hard to

articulate their opinions with clarity.

The researchers spent approximately 34 hours with 40 respondents discussing

customer experience in-depth in Business-to-Business (B2B) and Business-to-Consumer

(B2C) environments. The research is not limited to a particular industry sector but adopts

a cross-industry approach.

The team discovered 119 experience factors that are mutually exclusive. These form

the basis for the Customer Experience (CE) Model.

The results show that CE is context-dependent. The report highlights the key factors

that are important in driving customer experience in B2B and B2C markets. Factor

definitions are based on original quotes by respondents.

The study devoted attention to four aspects that are crucial to create customer

experience in a multi-channel environment (i.e., channel choice, consistency,

personalisation, and customisation). The findings highlight the relative importance of all

factors on experience.

The report concludes with the implications that managers should consider when

creating great experiences for their customers.



2. Introduction

Remember the Fort-T Model in 1908? Fifteen million cars were sold up to 1927 for $260

each. Those were the days, when competing on product quality alone was sufficient to make

the next sale. However, these days more and more markets are becoming ‘commodity’

markets. One could argue that products are weakly differentiated and that customers

perceive few technical differences between competing offerings. Thus, the need to create

differential advantage through added value has become vitally important and service is a

significant source of that added value. Today, however, even service can be copied, whilst

quality levels are virtually the same. In the move, therefore, from a product-led to a

consumption-driven economy, how then, do we gain a competitive advantage in today’s

ever-increasing competitive environment? This can be done by creating a great customer

experience and using it as a competitive weapon to help companies differentiate their

product and service offerings from those of competitors.

3. Literature on Customer Experience

The “Customer Experience” concept has aroused interest amongst researchers around the

world, but the definition and measurement of importance is currently a source of controversy.

Although a full treatment of the relevant background is beyond the scope of this report, it

does prove useful to learn about the key studies that relate to customer experience.

In a service environment, Grove and Fisk (1997)1 discovered that the presence of other

customers have an impact on one’s own experience. For instance, if other customers are

friendly and children are around, customers typically enjoy a better experience in a service

encounter. Also Jones (1999)2 focussed on services, but defined an experience as

‘entertaining’, based on factors that are ‘fun’ and ‘pleasurable’. The researcher discovered

the following ‘customer factors’:

Social factors, i.e., shopping with family and friends;

Task factor, e.g., searching for a Christmas tree in autumn;

Time factor, i.e., having enough time to shop;

Product involvement, e.g., buying a computer and customer is interested in technical

features;

Financial resources, i.e., having enough money to spend.

In addition to the factors above, Jones (ibid.) defined ‘retailer factors’. These are as follows:

Retail prices;

Selection, e.g., store offers unique selection of items;

1Grove, Stephen J. and Fisk, Raymond P. (1997): The Impact of Other Customers on Service Experiences – A

Critical Incident Examination of “Getting Along”. Journal of Retailing. Vol. 73, No. 1, pp. 63-88.2

Jones, M. A. (1999): Entertaining Shopping Experiences – An Exploratory Investigation. Journal of Retailingand Consumer Services. Vol. 6, pp. 129-139.



Store environment, e.g., animals and exotic plants in a store;

Salespeople, e.g., friendly, silly.

Overall, Jones concluded that all nine factors have an impact on (entertaining) shopping

experiences. The researcher adopted a questionnaire approach, where respondents

completed open questions. This form of questioning allows respondents to express their

views on customer experience. However, this would entail, that respondents are fully aware

of what makes an experience ‘fun’ and ‘pleasurable’. It also means that respondents have

the time and the ability to articulate their feelings in detail, so that answers can be analysed

by the researcher. Being aware of the limitations of applying a structured questionnaire to a

complex issue such as customer experience, Marganosky and Cude (2000)3 settled for a

focus group approach in the US retail context. They discovered six factors that have an

influence on the experience of customers in large retailing stores.

The following factors play a role:

Multi-store shopping, i.e., shopping in different stores instead of buying all items in

one particular store;

Bigness and confusion, i.e., big companies, extensive product choice, and

overwhelming product assortment are seen as confusing by some customers;

Personal interaction and personalised service, i.e., large stores are seen as

impersonal, cold, lacking of personal interaction by some customers;

Customer recognition by staff;

Prevalence of mistakes and price discrepancies;

Unused checkout lanes have a negative impact on the experience.

The last point, ‘unused checkout lanes’ is interesting and was the subject of several studies

(e.g., Groth and Gilliland, 20014 and anonymous, 20045). These studies have shown that the

waiting time and waiting procedure have an impact on customer experience in a service

environment.

Arnold et al. (2005)6 conducted their investigation in a US retail context and by applying a

standard interview technique, they discovered the following factors:

Interpersonal Factors – Salesperson:

o Interpersonal effort (helpful vs. unhelpful);

o Interpersonal engagement (friendly vs. unfriendly);

o Problem resolution (willing to go outside of rules vs. would not go outside of

rules);

o Interpersonal distance (not too pushy vs. very pushy);

3Morganosky, Michelle A. and Cude, Brenda J. (2000): Large Format Retailing in the US – A Consumer

Experience Perspective. Journal of Retailing and Consumer Services. Vol. 7, pp. 215-222.4

Groth, Markus and Gilliland, Stephen W. (2001): The Role of Procedural Justice in the Delivery of Services – AStudy of Customers’ Reactions to Waiting. Journal of Quality Management. Vol. 6, pp. 77-97.5

Anonymous (October 2004): The Customer Experience – Queues and Service Quality in Urban Post Offices.Research Study Conducted for Postwatch and Postcomm.6

Arnold, Mark J.; Reynolds, Kristy E.; Ponder, Nicole and Lueg, Jason E. (2005): Customer Delight in a RetailContext – Investigating Delightful and Terrible Shopping Experiences. Journal of Business Research. Vol. 58, pp.1132-1145.



o Time commitment (took time vs. took no time);

o Lack of skills and knowledge;

o Dishonesty.

Non-interpersonal factors – Product:

o Unanticipated acquisition (found exactly the right product);

o Lack of expected acquisition (could not find the product);

o Unanticipated value (price / bargain);

o Lack of expected value (price too high);

o Lack of technical quality (product did not perform to expectations);

o Bad atmosphere.

The results are worthy of note, as the researchers recognised that factors form a continuum

from a positive to a negative state.

Customers have options about how to deal with a company and Boyer and Hult (2006)7

devoted their research to investigate online purchases. The authors predefined the following

factors:

Product quality;

Service quality;

Product freshness;

Time savings;

Behavioural intentions.

Boyer and Hult opted for a Web-survey and an email research method and argued that all

factors have an effect on customer experience, albeit, to various degrees. This study

represents the latest approach in exploring the topic. Before leaving this example behind, it

is worth pointing out that the authors recognised a) product quality and service quality

cannot be ignored when defining customer experience, and b) customers can have an

experience in an online environment. In other words, the multi-channel environment might

give shape to the experience of customers. The literature that centres on a multi-channel

environment argues that four issues are crucial in achieving a great customer experience:

Personalisation, i.e., the company knows the name of the customer and the historical

background of the relationship;

Customisation, i.e., the company is able to offer a tailor-made solution to the

customer’s problem;

Consistency, i.e., the experience is consistent over time, regardless of the channel

used; and

Channel choice, i.e., the customer has either the option to select the appropriate

channel or is steered towards a particular channel when dealing with a company.

7Boyer, Kenneth K. and Hult, G. Tomas M. (2006): Customer Behavioral Intentions for Online Purchases – An

Examination of Fulfillment Method and Customer Experience Level. Journal of Operations Management. Vol. 24,pp. 124-147.



The constructs above are suggested by the literature – and this is based entirely on

theoretical grounds. However, the impact of the factors on customer experience has never

been subject to an empirical investigation.

There are a couple of points that are worth drawing from this debate. The studies can be

summarised as follows:

Limited scope: Research is done in the US, mostly in the retailing environment.

However illuminating the factors are for the US retailing industry, one should not

accept them uncritically when focussing on different industry sectors outside of the

US.

Preconceived ideas: Scholars typically consider pre-defined factors in a quantitative

approach and are thus unable to discover factors that exist subconsciously.

Key ingredients not uncovered: Researchers have contrary perceptions of customer

experience, depending on the limited focus they adopt (e.g., experience is

entertaining in services).

Definitions: Factors are loosely defined and not much detail is provided to create a

great customer experience in a particular sector.

Multi-channel: The importance of a multi-channel environment has been recognised,

but no research has taken this aspect into account.

4. Research Design – Special Interview Technique

Given the limitations of previous studies on customer experience, the researchers decided

on a special interview technique – Repertory Grid. This technique has its roots in psychology

and anthropology and enables respondents to articulate their views on complex issues. It

pushes them beyond the use of jargon, such as “customer experience is when I am served

well”. Quite often in management research, respondents are unable to articulate complex or

emerging issues. Whenever tacit knowledge cannot be conveyed directly, Repertory Grid is

an efficient tool to uncover the issues that rest on a subconscious level. To understand the

technique, a short description is given in this report. More detailed information can be found

in Goffin et al. (2006)8.

After collecting information that is important for statistical purposes (e.g., age, organisational

function), the researcher asked the respondent to name three companies or services, where

they have had a ‘good customer experience’. Afterwards, the respondent is asked to name

three companies/services that are the opposite – so, representing ‘poor customer

experience’. Finally, the respondent names three companies or services that fall somewhere

in-between the first two groups, i.e., an ‘average customer experience’. The nine names are

written on separate postcard-sized cards. Next, the interviewee is presented with a random

set of three cards and is asked, “in what way are two of the three companies similar and

different from the third in terms of the experience you have with them?” The way in which the

interviewee differentiates between the three cards reveals one aspect of how customer

experience is viewed by the respondent (e.g., staff are friendly vs. unfriendly). Each of the

interviewee’s cards (i.e., three customer experience groups in a randomised format) is then

8Goffin, Keith, Lemke, Fred, and Szwejczewski, Marek (2006): “An Exploratory Study of ‘close’ supplier-

manufacturer relationships.” Journal of Operations Management. Vol. 24, pp. 189-209.



rated on a five-point scale against the first factor (e.g., friendliness). Further sets of cards are

used to identify further factors. The interviewee is not allowed to repeat a factor and so each

set of cards elicits at least a new one, which forces the respondent to think deeply about

customer experience. Each interview was tape-recorded and then transcribed.

The factors and the explanations provided by the respondents, together with the ratings,

form a rich pool of qualitative and quantitative data. The raw data built a document in excess

of 1,400 pages in total.

Not all factors are equally important when describing customer experience. Hence, this

report differentiates between the key factors that play a role in different market segments, on

the one hand, and additional factors that have to be tested further in a specific market

context, on the other.

5. The Sample

The project is based on 40 in-depth interviews, ranging from 40 to 90 minutes each (50

mins. on average). The researchers spent about 34 hours discussing customer experience

with respondents. The companies and respondents are anonymized and definitions given by

individuals, original quotes etc. cannot be traced back to their source.

The research team aimed for an even split in terms of gender (i.e., 20 men and 20 women)

and business context (i.e., 20 interviews with a Business-to-Business and 20 with a

Business-to-Consumer focus). In this way, the team was able to capture a balanced view of

customer experience. With regards to Business-to-Business interviews, all respondents have

extensive experience when dealing with suppliers that deliver products and/or services. In

order to learn the most about the phenomenon, the project covers a wide range of industry

sectors and is not limited to a single one.

6. Overall Results

The team of researchers conducted 40 interviews that focused on customer experience.

Overall, the team discovered 119 experience factors. At this early point of the analysis, it

was crucial to identify meta-categories that share certain meanings and that are therefore

described by particular sets of factors (see example below).



Caring

Helpful Honesty Others

The diagram shows a meta-category labelled “caring”. Factors that are associated with

“caring” are, for instance, helpful, honesty, and others. In other words, the category “caring”

can be described by measuring factors such as helpful, honesty, etc. Meta-categories play a

role in B2B and B2C markets. However, depending on the specific industry sector (e.g.,

retailing, telecommunication), the importance of factors will vary. The key factors in B2B and

B2C environments will be discussed later. An overview of all factors within their meta-

categories will be given next.

Based on the meanings of the 119 factors, the main experience categories across all sectors

are as follows:

Access

1. Access of Information (Ease of getting information I need)

2. Accessibility (Ease of getting access to appropriate person/facility)

Application of Knowledge

3. Competence

4. Expertise

5. Knowledge

6. Value Creation (supplier accepts order, only if they thought they could provide

value)

Atmosphere / Environment

7. Atmosphere / Environment

8. Degree of Self-Dependence (supplier completes project with in-house personnel

vs. fully outsourced)

9. Network of Specialists (supplier has a wider network and customer gains access

to it)



Caring – Attitude

10. Attitude (helpful and efficient vs. don’t want to know)

11. Blaming (company blames customer for their fault)

12. Customer Care

13. Expectation (getting more than expected)

14. Friendly (empathy)

15. Helpful (attentive to needs)

16. Honesty (telling the truth; getting correct information)

17. Initiating Business (proactively offering solutions vs. reactive, ‘come and get it if

you want’)

18. Number of Staff (manpower)

19. Professionalism (focussing on task at hand vs. distracted, busy with private

issues)

20. Pushy

Caring – Procedures, Processes

21. Aftercare

22. Authorised (staff are empowered and authorised to solve issues; delegation of

authority)

23. Documentation (supplier does documentation of meetings etc.)

24. Implicit Understanding of Customer Needs

25. Mutual Understanding (company makes sure that both have mutual

understanding)

26. Pro-activity in Eliciting Customer’s Objectives

27. Problem Solving

28. Service Recovery / Complaint Handling

Communication

29. Advertisement (customer is aware of company/product through exposure in the

media)

30. Contact (dedicated and single point of contact)

31. Customer Centric (tailor-made conversation vs. a generic response taken from a

script)

32. Explanation (company gives reasons for what they are doing)

33. Feedback

34. Navigation (customer finds way around the shop, website etc.)

35. Openness

36. Placing Orders (difficult, bureaucratic vs. easy, straightforward)

37. Point of Contact

38. Process Definition Known to Customer (customer understands sales process)

39. Promotion / Junk Mail (company sent appropriate or no promotional offers vs.

receiving junk mail)

40. Status Quo Update



Different Sectors / Contexts / Conditions

41. Emotive Environment (i.e., emotional circumstances, like sick child, missed

plane)

42. Geographical Distance

43. Importance of Timely Delivery

44. Importance of Transaction (Important to me, e.g., buying house, high

expectations)

45. Market Position (highly competitive market or only a few suppliers)

Emotional

46. Experience Provider (offer items for pleasure)

47. Feel Good Factor

48. Offers Space for Important Issues in Life

Individual

49. Business Needs (supplier focuses on customer needs vs. supplier focuses on

what they do)

50. Customer Attention (customer recognition)

51. Customisation (tailor-made for individual)

52. Extent of Personal Contact

53. Flexibility (modifying the offering in response to the customer’s specific needs or

changing requirements)

54. Flexible (customer becomes more flexible when dealing with the company;

company offers various ways of when and how to deal with them).

55. Pay lip service (they do not mean it)

56. Personalisation (treated individually vs. just a number)

57. Segmentation Strategy (customer has the feeling that the offer is tailor-made for

the segment)

58. Service (highly involved in the service process as opposed to not)

59. Size (faceless corporation vs. small, more personal company)

Outcomes

60. Impression Impact (lasting impression, i.e., customer remembers for a long time)

61. Outcome of Relationship

Peer-to-Peer / Relationship with Other Customers

62. Exclusive (non-public; like a club; restricted, “members-only”)

63. Socially Dependent (experience is socially dependent on peers; other customers

are significant)

Relationship

64. Change of People within Relationship

65. Commitment

66. CRM Approach

67. Ease of Establishing Relationship

68. Frequency

69. Links (having wider links in the supplying organisation)

70. Number of People (involved in relationship)



71. Partner

72. Relationship (transactional vs. long-term)

73. Relationship Maintenance

74. Trust

75. Value Custom

76. Value Relationship

Reliability

77. Accurate invoicing

78. Acting as Agreed

79. Consistency

80. Customer is able to check quality before placing order

81. Information Dissemination (within the supplying organisation)

82. Number of Problems

83. Promise Fulfilment

84. Quality (product and service)

85. Reliability (keeping promises as opposed to break promises)

86. Sales Process Organisation (well organised process; flawless)

87. Supervision (supplier needs to be supervised; high maintenance vs. hands-off)

88. Track Record

Safety, Security

89. Safety of Belongings

Social Impact

90. Fashionable (well recognised by friends)

91. Perceived Affluence (shows others that I can afford it)

92. Premium Brand

93. Trend / Up-to-Date (up to date as opposed to old-fashioned)

Supplier Condition

94. Geographical Scope

95. Intermediary

96. Own Products (supplier is producer and distributor vs. only distributor)

97. Public Company

98. Self-evaluation (supplier has realistic view of their performance vs. have no

objective view about what they do)

Value for Money

99. Discounts (special offers)

100. Free Phone (If have to get in touch with company, calls are free)

101. Getting what paid for

102. Loyalty Programme (offers incentives)

103. Price Level (compared to average market price)

104. Pricing (fixed vs. negotiable)

105. Value for Money



Value for Time

106. Delivery Performance (speedy / on-time)

107. Efficient use of time

108. Response to queries

109. Responsiveness (good and quick at responding)

110. Time to serve / waiting time

Variety / Choice

111. Choice (let customer pick what they want whereas other companies make the

selection and customer has to accept it).

112. Educated Choice (company provides different options and information before the

purchase, so that customer can decide)

113. Multi-tier Service (company offers different service levels and customer can

decide)

114. Nature of Product (complex vs. simple)

115. Pick and Choose (free choice of what you want; let you pick what you want)

116. Product Range (variety vs. limited range)

117. Purchasing Pattern (re-purchasing the same product/service again vs.

purchasing different products/services)

118. Variety (the right amount of options vs. too much multiple choice)

119. Well stocked

Based on the analysis of constructs meanings, 19 meta-categories are uncovered. Some

categories relate to product aspects, while others relate to service. Both aspects, product

and service, are well established in practice and are important when discussing customer

experiences. However, certain categories highlight an attitudinal emphasis. Asterisk signs

indicate attitudinal categories in the following CE Model:



EXPERIENCE

SERVICE

PRODUCTEmotional

Peer-to-Peer

Social Impact

Relationship

Atmosphere

Application ofKnowledge

Communication

Value forTime

Accessibility

Individual

Caring- Attitude -

Caring- Process -

Value forMoney

Safety

Variety /Choice

Reliability

Outcomes

SectorDifferences

**

*

*

* Emphasis on attitude

SupplierCondition

CE Model

The CE Model shows three layers of an offering. It starts with the product layer that is at the

core of the offer. The service layer goes beyond the product – it augments the product.

Categories such as ‘value for time’ and ‘individual’ are attitudinal based, which indicates a

departure from existing service models. The outer-layer – experience – represents the least

tangible side of an offer and accommodates the categories ‘emotional’, ‘social impact’,

‘relationship’, ‘peer-to-peer’ and ‘atmosphere’. All these strings are woven together to

produce the fabric of customer experience.

The research team discovered some constructs in the interviews that – strictly speaking –

are not key ingredients of a customer experience. These factors have an impact on what

type of experience the customer expects (i.e., ‘supplier condition’ and ‘sector differences’)

and how the experience is perceived to be as an outcome when dealing with an organisation



(i.e., ‘outcome’ category). These latter three categories show that customer experience is

influenced at different stages of the purchasing process – stages that happen to be before,

during and after a transaction or relationship episode. They also indicate that the context has

an effect on customer experience.

On a generic level, the 19 experience categories apply to all industry sectors. As noted

earlier, however, one has to recognise that customer experience is context-dependent. This

entails that one has to test the importance of each factor within a given meta-category. Next,

the team analysed the factors that were elicitated in Business-to-Business environments and

the constructs that were raised in Business-to-Consumer markets.

6.1. Results: Important Business-to-Business Factors

In the B2B sector, the 20 respondents mentioned about 10 experience factors on average in

their individual interviews. Some factors have been mentioned by several respondents, while

others have been mentioned only a few times or only in ones. Overall, 75 different factors

have been discovered (i.e., these factors are part of the 119 constructs outlined earlier).

Although a detailed individual analysis of each repertory grid is possible, the key issues are

the exploration of the factors of customer experience across all B2B-respondents as well as

in identifying the most important Multi-Channel Customer Experience factors. Indeed, not all

factors are equally important when explaining CE.

“Important Factors” have to fulfil two key criteria: 1) the factor has to be mentioned by at

least 25% of respondents (i.e., ≥ 5), and 2) the factor has to have the power to differentiate

between the three ‘experience groups’, good experience, average experience, and poor

experience. In the latter case, the weighted variability index is the indicator that captures the

power of differentiation. An explanation about the index is outside the scope of this report,

but can be found in Goffin et al. (2006)9.

Taking both, the frequency count and the weighted variability index, as a basis, the important

CE factors in the B2B context are as follows (in alphabetical order):

1. Extent of Personal Contact

2. Flexibility

3. Implicit Understanding of Customer Needs

4. Knowledge

5. Pro-activity in Checking that Everything is OK

6. Pro-activity in Eliciting Customer’s Objectives

9Goffin, Keith, Lemke, Fred, and Szwejczewski, Marek (2006): “An Exploratory Study of ‘close’ supplier-

manufacturer relationships.” Journal of Operations Management. Vol. 24, pp. 189-209.




Based on the explanations given by the respondents, the team of researchers discussed the

meaning of the factors. The definitions are grounded in original quotes. Note that each factor

has two extreme poles, which are highlighted in brackets:

Extent of Personal Contact (personal vs. impersonal)

The extent of personal contact ranges from ‘personal’ to ‘impersonal’. The factor is defined

as “The extent to which the company deals with the customer through personal contact

methods. Some companies deal with the customer via personal contact methods, e.g., Face-

to-Face (personal). By contrast, the customer has no personal contact with the company,

e.g., Web-based or based on standardised paperwork (impersonal).”

The head of an IT department emphasised: “These two suppliers are

similar, because with these two I would have more a feeling of personal

contact through a sales person. It might be phone contact or through

email, but I’m actually talking to a person. It could even be a face-to-

face contact. The third supplier is different in that I am dealing with a

website. The typical responses start with ‘Dear Customer’. This is less

personal. I get the information, but I don’t have something like a client-

managed feel about it.”

Flexibility (flexible vs. inflexible)

The willingness and ability to modify the offering in response to the customer’s specific

needs or changing requirements. Some companies are willing and able to modify the

offering (flexible), while others stick to a standardised approach and are unwilling to flex

existing agreements (inflexible).

A programme manager in marketing explains: “I think it comes down to

flexibility… I think these two businesses – these two suppliers – have

proven to be flexible, in terms of the services they offer, when they are

available, in meeting my business needs and so forth. They are similar

in this respect. Whereas with this large organisation [names company],

you tend to have to fit in with them. For instance, if you want ad-hoc

consultancy services at short notice, it will happen with the first two

organizations. Whereas these people [respondent points to large

organisation] it is a very rigorous process you’ve got to go through in

order to secure the services. Besides, you have to pay for it at standard

rates. You’ve got to fit into their processes, their financial controls. This

isn’t always good when you just want to get something done very very

quickly.”



Implicit Understanding of Customer Needs (deep understanding of customer

needs vs. poor understanding of customer needs)

The extent to which the supplier implicitly understands the needs of the customer in terms of

the nature of the business, the context within which the product or service is being delivered

and the specific requirements of the customer through the application of existing knowledge

held within the supplier. Some companies have a deep understanding of customer needs

based on prior knowledge (deep understanding), while for other companies, the customer

has to explain the nature of the business, the context, and the requirements (poor

understanding).

A senior marketing manager described this point as follows: “These two

suppliers are similar, because they have an interest and an

understanding for the area in which I work. So that would be in the

sense that when you explain a project, you don’t have to explain the

context. The context is understood and therefore, their offer is more in

tune with your needs as a result. And the opposite to that is if you have

to explain the context and you’re not quite sure if they understand it or

not. There is no confidence that they either want to or do understand

your context for the service.”

Knowledge (possess knowledge which can be applied to add value vs. do notpossess knowledge)

The extent to which a company possesses the knowledge / expertise to add value to the

customer. Some companies possess knowledge / expertise and thereby add value to the

customer (possess knowledge which can be applied to add value), while others do not

possess knowledge / expertise to add value (do not possess knowledge).

A marketing manager in E-Commerce emphasised: “Some suppliers

have a lot of industry experience. It’s a difference working with suppliers

that have a wider knowledge of the industry. They’ll typically come with

more ideas that are suitable. So, they have suggestions that

supplement the things that we do or they have ideas about things that

we could try. And also the work that they’ll do it probably more

appropriate and not so many changes need to be made. Others

suppliers are lacking in that knowledge.”

Pro-activity in Checking that Everything is OK (proactively checking thateverything is OK vs. assuming that everything is OK)

The extent to which the company proactively checks that everything is OK. Some companies

are proactive in checking that everything is OK (proactively checking that everything is OK),

while others assume that everything is OK (assuming that everything is OK).

A quality manager highlights: “This supplier ‘is no contact at all’, and

these suppliers have representatives. I mean, the first supplier has a



rep. but we don’t see him at all. The other suppliers will come in and see

us on a fairly regular basis. So we have a regular contact – they come

to check that everything is OK. They typically ask whether everything is

OK. The first supplier just assumes that everything is OK.”

Pro-activity in Eliciting Customer’s Objectives (proactive in eliciting customer’s

objectives vs. no attempt to elicit customer’s objectives)

The extent to which the company actively seeks to elicit the objectives the customer has in

purchasing the product or service. Some companies are proactive in achieving this

(proactive), while others make no attempt to understand the customer’s objectives (no

attempt).

A group product manager in the marketing department made the

following comment: “They [suppliers] ask me what I want – what I try to

achieve. They ask me about my objectives. They don’t say ‘look this is

what we have;’ they try to find out what I would like to achieve and what

my objectives are. And even if I say ‘I would like to do X’, they probably

say ‘I understand you want to do X, but just explain to me a little bit why

you want to do X, so that I understand your motivations better.’ Because

even if I think I know what I want, it is helpful when they ask me some

questions to understand my objectives, so that I can understand them

better myself.”

Promise Fulfilment (keep promises vs. do not keep promises)

The extent to which the company keeps promises they have made to the customer. Some

companies always keep promises they have made (keep promises), while others fail to keep

their promises (do not keep promises).

A marketing manager and PA for CEO in marketing points out: “These

suppliers keep their promise – not all suppliers do that. Maybe they

don’t send their confirmation in time or not at all. Sometimes they are

awkward with the price and charge something different to what has

been agreed. Or they don’t do the job and when I ring them to ask for

the reason they say ‘ouhhhh, we had sickness in the company’ or ‘we

sent it to China instead of Germany’ or whatever. They come up with all

sorts of excuses. We have also good examples, of course. We also

have suppliers that do what they say and they are true to their word.”



6.2. Results: Important Factors Business-to-Consumer

20 respondents provided insight of customer experience in B2C markets. The researchers

elicited about 10 experience factors on average per interviewee. In this way, the team

discovered 81 different factors overall (i.e., these factors are part of the 119 constructs

outlined earlier).

As determined by the frequency count and the weighted variability index, the important CE

factors in the B2C context are as follows (in alphabetical order):

1. Accessibility

2. Competence

3. Customer Recognition

4. Helpfulness

5. Personalisation

6. Problem Solving


8. Value for Time

Accessibility (high ease of access vs. difficult to access)

The extent to which the customer finds it easy to access an appropriate person and/or facility

(e.g., webpage, store). Some companies make it easy for customers to access the

appropriate person and/or facility (high ease of access), while other companies make it

difficult for customers to access their people or facilities (difficult to access).

“This company is pretty good in terms of ease of access. Whether that

is finding the right person to talk to or being able to complete what you

want to do easily. It is about being able to hit the bit of the organisation

quickly, which enables you to do what you want to do. Whereas these

ones are not easily accessible. They have barriers.” (Male, 36 years).

Competence (competent vs. incompetent)

The extent to which the customer feels that staff know what they are doing and they are

competent in doing their job. Some staff inspire confidence in customers that they know what

they are doing and are able to do their job properly (competent), while others appear to be

inept and are not able to perform their job in a way that is required of them (incompetent).

A marketing manager and PA for CEO in marketing points out: “The

staff aren’t trained and let me tell you, they will answer your question

just to get rid off your call. The opposite represents this company. They

trained all advisers with all information to handle all of your questions.”

(Male, 35 years).



Customer Recognition (recognise customer vs. do not notice the customer)

The extent to which customers feel they are recognised and acknowledged when they

initiate contact. Some companies appear to recognise and acknowledge customers when

they initiate contact with the company (recognise customer), while others do not appear to

notice or acknowledge the customer (do not notice the customer).

“In this shop, I walk in and it has something to do with recognition. I felt

like an individual, that is my first impression. Or the other company, the

airline, I felt a very high level of recognition. With the other airline

company, you feel like you are a sheep or something. It is the same with

this store, for instance. There is no recognition; there is no

acknowledgement. It could have been anybody. You walk in and they

just carry on having a conversation.” (Female, 53 years).

Helpfulness (helpful vs. not helpful)

The extent to which the staff of the company are helpful. Some companies have staff for

whom nothing seems too much trouble in helping the customer (helpful), while other

companies’ staff seem unwilling to help the customer (not helpful).

“These two companies are closest to be alike, because – generally

speaking – nothing is too much trouble for them. Compared to the other

company, the service is really good. They are customer-focussed,

whereas the other company has slightly lost the plot in that department,

really. It is difficult to find somebody who would actually help you.”

(Female, 50 years).

Personalisation (personalised treatment of customer vs. anonymous treatment of

customer)

The extent to which the customer feels treated in a personalised way. Some companies

appear to know the customer as an individual and personalise the service delivery

(personalised treatment of customer), while others seem to treat the customer anonymously

(anonymous treatment of customer).

“With the superstore it was a personalised experience. I felt being an

individual customer. Whereas with these customers, I did not. I was just

a number and a person who is serving wouldn’t really care what

happened.” (Female, 26 years).

Problem Solving (try to resolve customer problem vs. are not interested in customer

problem)

The extent to which customers feel that the staff try to resolve their problems. Some

companies’ staff appear to take ownership of the problem and try to help to find a solution for



the customer (try to resolve customer problem), while others do not seem to be interested in

the customers’ problems (are not interested in customer problem).

“The reason for this company [names company] being a different

experience has something to do with solving problems. I felt as if

whatever problem I had, they would try to resolve it for me. They

genuinely did care. The other two companies are different. The opposite

would be that they wouldn’t take ownership. They wouldn’t resolve the

issue and I would have to chase them again through some other media

and I would just feel as if it does not matter to them that I have a

problem.” (Male, 35 years).

Promise Fulfilment (keep promises vs. do not keep promises)

The extent to which the company keeps promises they have made to the customer. Some

companies always keep promises they have made (keep promises), while others fail to keep

their promises (do not keep promises).

“These two companies have given me reason to go back to them in the

past. And this one has given me a reason never to use their services

again. The example is this: a gas engineer came around and had a look

at the gas fire in the living room. He came and had a look and said that

he would then go away provide us with a set of options and costs on

what to do with our gas fire. He failed to do so. I chased him over the

phone. He then came back again and did some more checks. Again, he

made commitments to come back with prices and options etcetera and

we never heard from him. So, for me that was a reason not to go back.

The reason why I prefer the other two companies is that they never let

me down. They do what they say and I am pleased with them.” (Male,

36 years).

Value for Time (company respects and makes efficient use of customer’s time vs.

company does not seem to care about customer’s time)

The extent to which the company demonstrates that they value, and attempt to make

efficient use of the customer’s time (for example, by shortening waiting times and delivering

services efficiently). Some companies appear to do everything in their power to use the

customer’s time efficiently (company respects and makes efficient use of customer’s time),

while other companies do not appear to care about using the customer’s time efficiently

(company does not seem to care about customer’s time).

“Oh, here you have to queue forever to get some help or to pay for the

goods [respondent points to company]. And they don’t seem to take

onboard that this is an issue with customers. It’s the same when you

phone up and you are constantly kept on hold, for instance. And you

generally get to the point where you think to give up, because it is all too

difficult, really. When you compare websites, the companies are closer



together. But, hmmmm…. Let’s put it in other words. With this particular

shop, you have long, long waiting times to get through to speak to

somebody. I see this similar to queuing, when waiting to be served. So,

I am talking about the waiting time to be served – whether it is or on the

till or on the telephone. You can take it even to the point where a

website is difficult. And therefore, you have to go through several stages

on their website, trying to get what you want. So, this is like being put

from one person to another. So, you can equate that almost. That’s a

similar – sort of – experience, because you have to wait long. One way

or the other. And there’s another aspect attached to this all. I mean, the

volume going through the supermarket is huge. In this shop [names

shop] there are busy times and less busy times, but their tills are always

manned at busy times. So, they do what they can do to shorten the

waiting time. This doesn’t mean that the waiting time is short, but they

do what is possible. So, you still have to queue, but at least you’re

seeing that the company is doing the best they possibly can to alleviate

that problem. But if you go into other shops where they got ten tills and

big queues and only six tills open, you think ‘ouchh, if they would open

the other four, I can get through that much more quickly’. So, in that

respect, the shop does a good service. They try the best to shorten the

time and they are as efficient as they can be. I mean, you are still

getting frustrated because you are queuing, but at least you can see

that every till is open. And it’s solely volume that is causing that

problem. You cannot expect them to build new tills. Can you?” (Female,

50 years).



6.3. Results: B2B Vs. B2C

In the interviews, the research team discovered the key constructs that are important in B2B

environments and the ones that play a dominant role in B2C markets. These constructs have

been explained earlier in alphabetical order. In the following, the report contrasts the key

constructs of both domains specifically in terms of their importance (i.e., as determined by

the frequency count and weighted variability index):

B2C B2B

1. Helpfulness 1. Extent of Personal Contact

2. Value for Time 2. Flexibility

3. Customer Recognition 3. Implicit Understanding of Customer

Needs

4. Promise Fulfilment 4. Pro-activity in Eliciting Customer’s

Objectives

5. Problem Solving 5. Pro-activity in Checking that

Everything is OK

6. Personalisation 6. Promise Fulfilment

7. Competence 7. Knowledge

8. Accessibility

The research team discovered a large number of experience factors in a multi-channel

environment. The table above highlights the most important factors in the two segments B2C

and B2B. 8 factors (out of 81) have a major influence on experience in B2C and 7 factors

(from the list of 75) have a fundamental impact in B2B. It is worthwhile reemphasising that

the order of factors is in terms of their importance, e.g., ‘helpfulness’ is more important than

‘accessibility’ in the B2C environment (refer to the definitions given above).

The results are interesting for three reasons: firstly, although a great number of factors have

been discovered, no more than 8 factors maximum are absolutely key in driving customer

experience in B2B and B2C; secondly, the analysis has shown that customer experience is

context-dependent (a fact that has been highlighted earlier when grouping the meta-

categories in the CE Model, refer to pages 20-21), only promise fulfilment plays a key role in

both sectors; thirdly, customer experience has been objectified and managers can now pay

close attention to the key issues that influence it.

6.4. Results: Multi-Channel Constructs

The team of researchers provided the respondents with the key constructs that describe a

multi-channel environment (refer to the literature review on page 12). In particular, 40



respondents evaluated ‘channel choice’, ‘personalisation’, customisation’, and ‘consistency’

in the B2B and B2C contexts10. The figure below gives a snapshot of the findings:

Importance of Provided Constructs

0

5

10

15

20

25

30

35

Imp

ort

an

ce

in%

ALL 23.068 30.721 26.26975 19.94175

B2B 23.3105 31.123 27.392 18.175

B2C 22.8255 30.319 25.1475 21.7085

1. Choice 2. Personalisation 3. Customisation 4. Consistency

Average Importance

Importance of Provided Constructs

The figure shows the impact of the four factors on customer experience (B2C, 20

respondents = Red; B2B, 20 respondents = Black; All, 40 respondents = Blue). From this

vantage point and ignoring all other aspects, the four factors explain customer experience in

total, i.e., 100%. This means, that the average importance per construct is 25% as indicated

by the y-axis of the diagram. The figure illustrates, first of all, that all four factors play a role

when explaining customer experience in a multi-channel environment. If this would not be

the case, certain factors would be deemed unimportant by the respondents and would have

scored very low. Secondly, the factors ‘personalisation’ and ‘customisation’ (above average)

are more important than ‘choice’ and ‘consistency’ (below average). The result is valid when

assuming a general viewpoint (i.e., ALL) as well as when focussing on both industry sectors

independently (i.e., B2B and B2C).

10Channel Choice (the customer has either the option to select the appropriate channel or is steered towards a

particular channel when dealing with a company); Personalisation (the company is knows the name of thecustomer and the historical background of the relationship); Customisation (the company is able to offer a tailor-made solution to the customer’s problem); and Consistency (the experience is consistent over time andregardless of channel used).



7. Implications for Managers

Providing great products and excellent service are hygiene factors in today’s business world.

Customers are becoming more and more experience-oriented and managers have to be

aware of the factors that have an influence on their experience. This study highlights 119

mutually exclusive factors and grouped them in 19 meta-categories. The study, furthermore,

highlighted the factors that are of key importance in the B2B and the B2C context and pre-

selected them. While these factors are crucial in generating a great customer experience,

they are not the only contributing aspects. In addition to the common factors, managers will

need to check the factor list provided in the main body of the report in terms of their influence

in their specific organisational context. Factors are not equally important when explaining

customer experience – remember, the experience is context-dependent. Thus, managers

will have to get in touch with their customers directly (either by questionnaire or interview) in

order to assess which of the experience attributes weight most heavily in the purchase

decision and to exploit this knowledge further.

In addition to the 119 experience factors, managers will have to pay close attention to

supplementary factors in a multi-channel environment. These are ‘channel choice’,

‘experience consistency’, as well as ‘personalisation’ and ‘customisation’. Typically, the latter

pair of factors is deemed more important than the former pair by customers. Managers,

however, cannot afford neglecting a single one of them. This might imply that organisations

will have to refocus their customer perspective, as they will have to be capable of achieving

high experience quality levels consistently across all channels.

Achieving a great experience is a concern for customers and practitioners alike. On the face

of it, it seems as though the message is a simple one: Provide a great experience and you

will keep your customers happy. Yet, this is easier said than done and the authors of this

report wish you success in achieving it.

The Henley Centre for Customer Management

The Primary Objective of the Henley Centre for Customer Management is to promote

Customer Focus and Service Excellence best practice through observing practice in leading

companies and synthesising this into useful knowledge that helps members to improve their

own Customer Management and Customer Service plans and implementations.

Centre Contacts:

Director Assistant Director

Professor Moira Clark Tony Harrington

Tel: 01491 418710 Tel: 07815 938534

[email protected] [email protected]

Henley Business School,

Greenlands, Henley-on-Thames, Oxfordshire RG9 3AU

Maximising Value through Relationships

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